WITH interest rates ruling weak, the options in fixed income programmes are getting rather limited. In this backdrop, the fixed deposit programme of Kotak Mahindra Finance could be a good option for investors with a low-to-medium risk profile.

The company's credit quality is on the high side. It is among the better finance companies operating at present.

The financial and operational risk profile is stable and the gearing levels and the interest coverage ratio are also at manageable levels. The company is not likely to face any problems in servicing its fixed deposit base. Investors can consider the short-end tenors on offer. Given the uncertainties over the interest rate scenario, they need not keep their funds locked for too long.

Kotak Mahindra Finance's fixed deposit programme is open for investment. The company offers various plans. Under the fixed deposit programme, an investor has a choice of monthly, quarterly and half-yearly income plans.

Under the monthly income plan, the investor can choose between three tenors  12, 24 or 36 months  at 8.6 per cent, 8.85 per cent and 9.35 per cent respectively. The minimum deposit under this option is Rs 21,000. The maximum deposit to avail of the benefit of not deducting tax at source is Rs 58,000, Rs 56,000 and Rs 53,000 respectively.

Under the quarterly income scheme, for the same tenors, the interest rates on offer are 8.65 per cent, 8.90 per cent and 9.40 per cent respectively. The minimum deposit is, however, lower at Rs 10,000. The maximum deposit without TDS is Rs 57,000 for the 12-month option. The amount for the two- and three-year options remains the same, as with the monthly income option.

Under the half-yearly interest payment option, the rates for the same tenors are 10-percentage point over and above that for the quarterly interest scheme. The minimum deposit is at Rs 10,000 and, thereafter, in multiples of Rs 1,000.

Also on offer is the cumulative deposit scheme. Under this scheme also are three tenors  12, 24 and 36 months at 9 per cent, 9.68 per cent and 10.73 per cent respectively. The minimum investment is Rs 10,000 and, thereafter, in multiples of Rs 1,000.

Investors can also choose an intermediate scheme for a period of 18 months at an effective rate of 9.25 per cent. The minimum investment is Rs 10,000.

Deposits are accepted at offices of Kotak Mahindra Finance located throughout India. Investors can contact the Chennai office at No 45, Montieth Road, Ceebros Centre, Egmore, Chennai - 600 028.